IMF to announce outcomes of negotiations with Egypt on new financing within few weeks: Georgieva

Ahram Online , Sunday 11 Feb 2024

The International Monetary Fund (IMF) will announce the outcomes of the ongoing negotiations with Egypt within the upcoming few weeks, the Managing Director of the IMF, Kristalina Georgieva, said on Sunday.

Kristalina Georgieva, managing director of the International Monetary Fund (IMF). Photo: AP


Georgieva made her statements during her participation in the Summit of the Governments held in the UAE.

The ongoing discussions with Egypt focus on pushing forward the almost standstill $3 billion programme. They also tackle the possibility of providing additional financing to Egypt from the fund and other international partners.

Georgieva added that the expected additional financing will be substantial and urged the government not to rush to sell stakes in state-owned assets under its IPO (Initial Public Offering) programme amid the ongoing economic challenges on the global and local levels.

The IMF announced earlier this month that its delegation's visit to Cairo had succeeded. The visit focused on finalizing the first and second reviews of Egypt's reform programme, supported by the IMF's Extended Fund Facility (EFF).

The IMF's mission chief stated that the Egyptian authorities have agreed on the main policy elements of the programme, and he expressed a strong commitment to act promptly on all critical aspects of Egypt’s economic reform programme.

In December 2022, the IMF approved a $3 billion loan programme for Egypt through the Fund's EFF. Due to the impact on Egypt's economy of the war in Ukraine and in Gaza, the programme's first and second reviews, scheduled in March and September 2023, were never completed. 

In an interview with Alsharq with Bloomberg, Georgieva stated that Egypt must reschedule its underway mega projects, given the impact that the escalation in Gaza has had on the country's economy, including its IPO programme.

The Egyptian Cabinet announced on 8 February 2023 the offering of 32 state-owned companies and banks either for sale to strategic investors or offerings on the EGX index or a mix of both.

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